Super Top up Health Insurance vs Top up Health Insurance

What is a top up health insurance plan

A top up health insurance policy covers the medical expenses beyond the threshold level/deductible one has chosen. This is a good choice if you want to add additional cover to your existing Insurance Policy with very less premium or if you are yet to opt for medical insurance; you can buy top-up policy to take medical insurance cover beyond a threshold limit that you can afford.

Having an existing health insurance policy is not a mandatory requirement for buying a top up health insurance plan. Your top up plan will simply pay the claim amount over and above the threshold limit you have opted for. .

Super Top up Health Insurance vs Top up Health Insurance.

Now, there are two kinds of plans being offered by Indian insurers, top up and super top up. What is the difference between these two, one might wonder. Top up plans cover hospitalization expenses on per hospitalization or per claim basis, which means they will pay if the claim amount for a single hospitalization is over and above the threshold limit or deductible opted for. On the other hand, Super top up plans cover aggregate hospitalization expenses during the policy period exceeding the Threshold Level.

To make this difference more clear, let us take an example.

Suppose you have an existing health insurance for Rs 500000 and a top up plan for Rs 1000000 with a threshold limit of Rs500000.

  • If there is a single hospitalization claim for Rs 400000 in a policy period, your existing policy will pay for it
  • If there is a single hospitalization claim for Rs 600000 in a policy period, your existing policy will pay Rs 500000 and remaining 100000 will be paid by top up plan
  • If there are two claims for Rs 400000 each, first claim of Rs 400000 will be paid for by your regular health insurance plan and for the second claim, Rs 100000 again will be paid by the existing health insurance plan. However, the remaining Rs300000 will be borne by you as your top up plan works only when the threshold limit of Rs 500000 is crossed for a single hospitalization.
  • Now suppose you have an existing health insurance for Rs 500000 and a super top up plan for Rs 1000000 with a threshold limit of Rs500000
  • If there is a single hospitalization claim for Rs 400000 in the policy period, your existing policy will pay for it
  • If there is a single hospitalization claim for Rs 600000 in the policy period, your existing policy will pay Rs 500000 and remaining 100000 will be paid by top up plan
  • If there are two claims for Rs 400000 each, that means an aggregate of Rs800000 in the policy year, your regular health policy will pay Rs 500000 and the remaining Rs300000 will be covered by your super top up plan; as the threshold limit in case of super top up plan is applicable on aggregate hospitalization expenses in the policy year.

Top up and Super Top up plans are a good way to enhance the sum insured of your regular health insurance policy for a nominal premium. Some insurers also offer the option to convert your top up plans to regular health insurance plan after the completion of a certain period or age. Moreover, they offer most of the benefits offered by a regular health plan at a much less cost.

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